Gold Price Forecast – Gold markets forming a base

Gold markets were very noisy during the day on Tuesday, but it continues to be a situation where the $1218 level is offering support. However, we have not made a higher high yet, so I think at this point we are only trying to form a base, not necessarily turn things around. · FX Empire

Christopher Lewis

Updated Tue, Jul 31, 2018, 10:43 PM

The Gold markets did bounce yet again at the $1218 level on Tuesday, as we continue to see this market try to form a longer-term base. I believe that the market will eventually bounce longer-term, but right now I think we also need to test this lower level. I believe that there is a ton of support at the $1200 level, and of course if you keep in mind that there are a lot of announcements of the next couple of days it will influence the US dollar, the British pound, and by extension Gold.

Gold markets will be sensitive to the Bank of England, the Federal Reserve, and of course the jobs number on Friday. Ultimately, this is a market that I think will go higher but I think you should be very cautious about your position size and keep it rather small or at the very least unlevered. Longer-term traders I think are picking up cheap gold near the $1200 level, but if we were to break down below there it’s likely that we could drop down to the $1000 level. That’s an area that should bring in massive buying, and I would back up the truck at that point. However, I believe that we won’t even get there. I believe we are starting to come close to forming a bottom in the gold market, but of course headlines can change everything in the blink of an eye these days. I’d be a buyer, but I’d be a cautious buyer on dips.